The Long Beach housing inventory – and the housing inventory across the entire country – is extremely low right now. Throughout the US headlines are talking about inventory and the seller’s market. From Hartford, Connecticut to Columbia, Missouri, to central Mississippi, New Hampshire, and Seattle, low housing inventory and a seller’s market seems to be everywhere.
Here at The Shannon Jones Team in Long Beach, California, we’ve been saying the same thing! Housing Inventory Reaches Historic Low and How To Buy A Home In A Strong Seller’s Market are just two of our recent headlines. The experts don’t seem to think it’s going anywhere either. Forbes and loan experts predict the market will continue as is into 2021. It seems like everyone is talking about the seller’s market. However, we realized that not everyone truly understands what that means. So here is our deep dive into Long Beach’s housing inventory and what it truly means to be in a seller’s market.
What is a Seller’s Market?
A seller’s market is when there is a shortage of homes available for sale, but lots of potential buyers. To put it simply, demand exceeds supply. The historically low-interest rates are fueling extreme home buying demand. However, due to the uncertainty of COVID, many homeowners are scared to put their homes on the market. This has led to high buyer demand and low housing inventory.
The seller’s market results in pricing power for the seller. Meaning, they can ask for more money and the home could still sell for higher than the asking price. Bidding wars are common which can drive prices up even more.
For the buyer, it means little to no room for negotiations because of high demand. Furthermore, buyers may have to make concessions they wouldn’t normally make. For example, covering closing costs and not asking for too many repairs.
Worried about selling your home during COVID? Check out how to Safely Sell Your Home During COVID-19!
Long Beach Housing Inventory
The Long Beach housing inventory has been shrinking in recent months, but prices have been skyrocketing. It’s not uncommon for some Long Beach neighborhoods to have less than 10 homes for sale at a time. What does this mean for you? If you are a homeowner who has considered selling your home, now is the time to do so. You currently hold the power when it comes to pricing your home. You are far more likely to receive your bottom line and demand is so high, you may not need to do any updates to your home.
A Closer Look at the Numbers
We can talk about how low the Long Beach housing inventory is, but pictures are worth a thousand words. Below is a graph that shows the incredibly steep drop off the housing inventory is facing right now. You can see that there’s usually a dip in the supply of homes in the winter, but we’re at a lower point now than we were the past two winters. Overall in Long Beach, as of December, there was a 1.5 month supply of homes.
Meanwhile, the volume of closed home sales is experiencing a totally different trend. Thanks to low-interest rates, buyer demand is at record high levels.
As a result, the number of active listings did this:
Some neighborhoods have lower inventory than others. For example, Los Altos had 19 active listings in December 2019 compared to 10 in December 2020. As of today, January 28, 2021, there are 8. Many neighborhoods in Long Beach have less than a one month supply of homes. As a result, multiple offers and bidding wars are becoming increasingly frequent.
Opportunities for Homeowners…
The low Long Beach housing inventory has led to amazing opportunities for all homeowners. However, if you want to move out of state or downsize, right now is unprecedented. Rising equity and home prices mean you can cash out on your home with high profits. If you’re curious about what your home is worth right now, you can get a quick estimate HERE.
In order to maximize your selling price, a strong marketing strategy and a real estate agent with strong negotiating skills is important. To take a peek at our marketing strategy, please watch the video below and check out our marketing page HERE.
Want to Take Advantage of the Seller’s Market?
The Shannon Jones Team can help. Our team of experts can help you determine what your home is worth and how much profit you can expect to make. Additionally, we have a number of buyers who are looking for the right home. Yours could be it! Let us help you take advantage of the low housing inventory while you can! Please give us a call at 562.896.2456 or fill out the form below. We look forward to serving you!